Rules day trading forex gaps

Gaps are areas on a chart where the eules of a stock (or another financial instrument) moves sharply gapps or down, with little or no trading in between. The enterprising trader can interpret and exploit these gaps for profit. This article will help you understand how and why gaps occur, and how you tradinng use them to make profitable trades.Gap BasicsGaps occur because of underlying fundamental or technical factors.

What are Gaps in trading and how to trade GapsGaps in trading are a common phenomenon and very commonly occurring in stocks. A gap is formed when the opening price for the day is higher or lower than the closing price of the previous day. A gap is nothing but an empty space between the closing price of the previous candle and the opening price of the next candle.The chart below is an example of a Gap formed on NZDUSD. Here, we can see the difference.